International freight forwarding
It is an ironclad rule of business that the production of higher numbers of a product mean lower unit costs, the so called economies of scale. This principle, or rather one very similar is the foundation of the international freight forwarding business. An international freight forwarding firm collects shipments from a variety of businesses and consolidates them into one larger shipment using economies of scale to pass on savings to all clients. Aside from cost savings the clients of the international freight forwarder will enjoy the services of a professional company that will take care of route selection, price negotiation and all the required documentation. The consolidation of loads not only means that the freight forwarder can get cheaper rates than would be the case for individual business, but that space can be prebooked to ensure speedy transport of the items concerned.
An international freight forwarding firm might employ either sea or air freight companies in order to accomplish the business goals of the client. Each of these methods of transport has both advantages and disadvantages. Air freight is quick, but extremely expensive, while transport over water is less costly for bulky items, but is riskier in terms of the dangers experienced at sea, which today include piracy, it is also more time consuming.
Freight forwarding is by nature a business of cubic meters and large amounts of paperwork the unwary can stand to lose immense amount of money and time. The use of a novice freight forwarding company can expose the principle to large amounts of reputational risk. End users of the cargo are notoriously impatient and often the time sensitivity of the transport process can mean the difference between market domination and complete failure of a business transaction. Any mistakes can ruin the relationship between the shipper and end client, often irredeemably. The use of a professional international freight forwarding agent is thus a business imperative.
For more information on the risks and rewards of either air or sea transportation and international freight forwarding contact Mactransco.
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